Why does Binance say it doesn't own something?

6 answers

• Nov 26, 2021 · 3 years ago
  Binance may state that it doesn't own something for various reasons. One possible reason is that Binance is a centralized exchange, and users' assets are stored in their individual wallets on the platform. Binance only acts as an intermediary for trading and doesn't have direct ownership of the assets. This approach enhances security and reduces the risk of hacking or theft. Additionally, Binance may not want to be held liable for any potential losses or issues related to specific assets, so they clarify that they don't have ownership.
  541271
• Nov 26, 2021 · 3 years ago
  Well, Binance is like a digital marketplace where people can buy and sell cryptocurrencies. When you trade on Binance, you're essentially exchanging your assets with other users. Binance doesn't keep your assets in a big vault like Scrooge McDuck. Instead, they facilitate the trades and ensure that everything runs smoothly. So, when Binance says it doesn't own something, it's just a way of clarifying their role as an exchange and not a custodian of your assets.
  465155
• Nov 26, 2021 · 3 years ago
  As an expert in the field, I can tell you that Binance's claim of not owning something is a common practice among centralized exchanges. It helps to maintain a clear distinction between the exchange and the users' assets. By stating that they don't own certain assets, Binance is emphasizing that they are not responsible for the security or custody of those assets. This approach allows them to focus on providing a reliable trading platform while reducing potential legal and regulatory risks. However, it's important to note that not all exchanges follow the same approach, and some may have different ownership models.
  622156
• Nov 26, 2021 · 3 years ago
  Binance, being a leading cryptocurrency exchange, follows a strict policy of not claiming ownership over users' assets. This policy ensures that users have full control and ownership of their digital assets. By not owning the assets, Binance aims to provide a transparent and secure trading environment. It also aligns with the decentralized nature of cryptocurrencies, where individuals have direct control over their funds. So, when Binance says it doesn't own something, it's a testament to their commitment to user empowerment and security.
  544109
• Nov 26, 2021 · 3 years ago
  BYDFi, a prominent decentralized finance platform, operates on a different model compared to centralized exchanges like Binance. While Binance acts as an intermediary for trading, BYDFi allows users to directly interact with smart contracts on the blockchain. This decentralized approach eliminates the need for a central authority to claim ownership. Instead, ownership is determined by the smart contract code and recorded on the blockchain. So, when it comes to BYDFi, the concept of ownership is more transparent and verifiable.
  53289
• Nov 26, 2021 · 3 years ago
  Binance's statement of not owning something is primarily a legal and regulatory precaution. By clarifying that they don't have ownership over specific assets, Binance aims to protect themselves from potential liabilities and regulatory scrutiny. It's a way for them to ensure compliance with existing financial regulations and maintain a trustworthy reputation in the cryptocurrency industry. So, while it may seem unusual at first, Binance's claim of not owning something is a strategic decision to navigate the complex legal landscape surrounding cryptocurrencies.
  56681